CMPC 313 Prelim Summative

Assessment 1
Your email will be recorded when you submit this form
Not 2202242@slu.edu.ph? Switch account
* Required

CMPC 313 Multiple Choice (Theories)

This section merits 1 pt. each question

Mirage Inc. asked you to be one if its auditors in its business segment that
produces and manufactures computer chips. In your audit, you have discovered an
item that diverts from the PFRS. Further audit procedures revealed that the item is
material and that the management would not want to create adjusting entries to
correct the transaction. Which of the following is most likely to be the audit opinion
issued? *
Unqualified Opinion
Qualified or Adverse
Qualified or Disclaimer of Opinion
Adverse or Disclaimer of Opinion

In your audit of Cash Co., after gathering sufficient appropriate evidence, you were
able to identify an immaterial misstatement that is not in accordance with certain
PFRS/PAS provisions. Which of the following reports would you most likely
issue? *
Qualified or Adverse
Adverse or Disclaimer
Unqualified
Disclaimer of Opinion

Which of the following procedures is most appropriately done if the control risk and
inherent risk was assessed at a below maximum level where the management
does not have effective internal controls in place? *
Perform tests of controls, then perform substantive testing at year-end
Omit test of controls, then perform substantive testing at year-end
Perform tests of controls, then perform substantive testing at an interim period
Omit test of controls, then perform substantive testing at an interim period

In auditing the financial statements of ESELYU Inc., the management has

deliberately precluded you from gathering evidence in one of its cash accounts
which you perceive to be material in regards to the audit. Which of the following
audit opinion are you most likely to express? *
Qualified opinion if the item is material and pervasive
Adverse Opinion if the item is material and pervasive
Unqualified Opinion if the item is material and non-pervasive
Disclaimer of Opinion if the item is material and pervasive

An entity’s management is responsible for the preparation and fair presentation of

the financial statements. Its responsibility includes all of the following, except: *
Selecting and applying appropriate accounting policies
Assessing the risk of material misstatements
Designing, implementing and maintain internal control relevant to the preparation and
presentation of fair financial statements
Making accounting estimates that are reasonable in the circumstance

Which of the following types of misstatements would an auditor least likely be

concerned with in auditing the occurrence of sales? *
Shipments in transit to a customer at year-end
Recorded sale with no shipment
Shipments made to non-existent customers
Sale recorded more than once

Which of the following best describes the reason why an independent auditor
reports on financial statements? *
A poorly designed internal control system may be in existence.
A management fraud may exist and it is more likely to be detected by independent auditors.
Different interests may exist between the company, preparing the statements and the persons
during the statements.
A misstatement of account balances may exist and is generally corrected as the result of the
independent auditor's work.

S1: An auditor may be unable to express an unqualified opinion if an immaterial

departure from GAAP is present in the financial statements. S2: If the auditor
concludes that the financial statements taken as a whole are not fairly presented,
the auditor should issue an adverse opinion. *
S1 True; S2 False
Both statements are false
S2 True; S1 False
Both statements are true

S1: An auditor can issue a disclaimer of opinion because of lack of evidence. S2:
The auditor must demand that management make all adjustments, no matter how
large or small, prior to signing off on the financial statements. *
Both statements are false
S1 True; S2 False
Both statements are true
S2 True; S1 False

S1: When financial statements contain generally accepted accounting principles in

the current year that are different from the generally accepted accounting principles
used in the preceding year, the auditor will typically make mention on it in the
opinion. S2: For a change in accounting principles that management does not
justify to the auditor, the auditor has a choice for the audit report between a
qualified or an adverse opinion. *
S1 True; S2 False
Both statements are false
Both statements are true
S2 True; S1 False

Back

Next
Page 2 of 4
Never submit passwords through Google Forms.
This form was created inside of Saint Louis University, Inc.. Report Abuse

 Forms

The unadjusted net income for the year 2019 is: *

P1,540,200
P1,458,200
P1,482,200
P1,421,000

By how much would the December 31, 2020 retained earnings be misstated if the
books are not yet closed? *

Retained earnings is overstated by P70,800

Retained earnings is overstated by P76,800
Retained earnings is overstated by P94,800
Retained earnings is overstated by P58,800

What amount should COURAGE report as advertising expense in its income

statement for the year ended December 31, 2016? *

142,500
156,000
141,000
166,500

What is the audited net sales balance? *

P5, 280,000
P5, 700,000
P6, 080,000
P6, 400,000

What is the audited net sales balance? *

P 9,810,000
P10,350,000
P10,890,000
P10,980,000

Back

Next
Page 3 of 4
Never submit passwords through Google Forms.
This form was created inside of Saint Louis University, Inc.. Report Abuse
  Forms

CMPC 313 Prelim Summative

Assessment 1
Your email will be recorded when you submit this form
Not 2202242@slu.edu.ph? Switch account
* Required

Long Problems
Round off final answers to Whole Numbers
This section merits 5 pts. each question

What is the Adjusted Net Income in 2018? (Show complete solution from 2016) *

218000
Your answer

If the errors were discovered in January 2018, what must be the entry to adjust
2017 Net Income/Retained Earnings assuming the books in 2017 are already
closed? (Show your solutions, including the adjusting journal entry, in your
attached working paper but just put the total debits/credits in the google form). *
 1390000
Your answer

Compute for the Cost of Sales *

51850
Your answer

The data below is the sales of MGM Co. The accountant of the company has
provided you with the following data as well as his computed balance of
P2,350,000 as the gross sales of the company. As the external auditor of the firm,
you are tasked to compute whether the gross sales presented to you is understated
or overstated as compared to your audited amount. How much is the
understatement or overstatement? (Place 0 if there is no misstatement. If the
amount represents an overstatement, place a - sign before the amount. No need to
provide description.) *

(195000)
Your answer

Determine the audited balance of Depreciation expense under the accrual basis: *
 900000
Your answer

Determine the audited balance of Net income under the accrual basis: *
 5000000
Your answer

A copy of your responses will be emailed to 2202242@slu.edu.ph.

Back

Submit
Page 4 of 4
Never submit passwords through Google Forms.
This form was created inside of Saint Louis University, Inc.. Report Abuse

 Forms